The lesser-known benefits of having a homeowners insurance policy

urlDuring the event of natural disaster or an accident that harms your property, having a homeowner’s insurance policy offers you the safety net that can protect you from burning a hole in your wallet. If you don’t want a potential depletion of your finances, you should be wise enough to get a homeowners insurance policy on your home. Homeowners insurance includes liability coverage , property insurance, but the damage done to your home due to natural disasters like flood, fire, termite or war aren’t covered on the standard homeowners insurance policies. If you aren’t aware of the different benefits of owning this policy, here are some potential benefits that you might take into account.

Protects your home against wedding disasters: We all know that a hotel theft is enough to ruin an entire wedding, a special event or even an anniversary party, especially when jewels, heirloom pieces and expensive furs are stolen! During such a time, if you have a homeowners insurance policy, the aforementioned items can probably be covered. A typical homeowners insurance policy will insure your personal possessions for between 50 and 70% of the insured value of your home. There are some other companies that limit the coverage amount on your possession to 10% when you’re not present in your home.

Protects against lost luggage problems: According to the statistics, each year, there are more than half a million pieces of lost luggage found. This is in fact a huge improvement given the 1 million plus mark that used to be the norm a couple of years ago. In such cases, if you have a homeowners insurance policy, you can get compensation from the airline. This is also typically insured under the off-premises coverage in your homeowners’ insurance policy.

Your investment remains protected: We all will unanimously acknowledge to the fact that investing our dollars in a home is perhaps the biggest type of investment that we can make in our lifetime. After making such a huge investment, if we don’t get a homeowners insurance policy, it is sheer foolishness. We need to protect our investment by insuring our home against all kinds of disasters as this will also ensure our peace of mind.

It is possible to get low premiums easily: There are many homeowners who avoid opting for a homeowners insurance policy as they are worried about their extra expenses that they might have to bear. But you will be surprised to know the extremely low costs that you might get on your homeowners insurance policy if you shop around and take all the right steps. You just have to install some safety features in your home, raise the deductible on your homeowners insurance policy and also raise your credit score in order to get an affordable premium within your means.

If you want to avail the above mentioned benefits, get a homeowners insurance policy from your lender. Nowadays, most lenders offer this as there are more chances of a natural disaster. If you don’t want to burn a hole in your wallet, you should take into account the above mentioned points.

Jimmy Simond is a founder of, he share his immense knowledge of finance in this blog.